Before you sign your name to a solar panel lease on your house in Escondido CA 92029 you have to understand exactly what you are actually getting into. If you’re in the business of selling solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are reading if they do even a small amount of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will check out when they do 30 minutes of research online before committing to a 20 year agreement. Maybe you’ll now understand why you get so many cancellations and why if you don’t close the deal on the very first consultation you’ve got practically no chance of closing it later. Why not alter your technique do exactly what’s right for the customer and get on board with a business that provides market leading value (price + quality + service).
The Solar Lease in Escondido CA 92029 or PPA Sales Pitch usually includes six bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is hardly paying nothing. If you add up all of those month-to-month payments throughout the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Many no cash down solar loans are offered. If you have the credit score to qualify for the lease you can use the bank’s money to finance your solar system with zero cash down.
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2. No fears. The leasing/PPA company in Escondido CA 92029 is liable for all maintenance and repairs on the system.
The renting company will certainly not clean your photovoltaic panels which is about only upkeep used on a solar system. Solar systems are very low maintenance with no moving parts and feature incredibly long manufacturer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Many tier 1 solar devices producers are larger and more solvent than the solar leasing business by lots of multiples. Those long service warranties are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting business insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping an eye on for the life of the system, using the very same tracking devices made use of by the leasing business.
5. Just sign a contract and the leasing business does everything else.
When purchasing a system you likewise just sign a contract and the solar specialists does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease does not strike your personal credit. Doesn’t affect your financial obligation to income ratio.
This may be the only real advantage of the lease however it comes at an awefully high cost. If this is one of your primary issues there are financing options for a purchase (PACE and HERO) that also do not strike your personal credit or influence your debt to income ratio. And those programs allow practically any homeowner to go solar despite their credit score.
Now for the six major drawbacks to a solar lease in Escondido CA 92029 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are investing in solar on your roof! You’re simply providing them a guaranteed 20 year capital!
2. Now you have 2 energy costs not just one! In essence the leasing business ends up being a 2nd energy. So, sign a solar lease and now you have 2 energy companies you need to pay each month.
3. Many leases or PPAs lug a yearly cost escalator, generally 2.9 %. So while you may be saving money today in a several years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any applicable cash rebates. You also will not be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is paid off you can take pleasure in complimentary electrical power from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be bothersome. Solar leases use the new owner to presume the lease and terms. If you check out any of the above you can probably see why an educated customer would not be interested in presuming the commitments of your lease. This is especially real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has actually now raised the expense of electricity to equivalent or more than the cost of electricity from the energy.